|
1.
|
A profession has certain attributes that are evident. A distinguishing attribute is: 3
|
|
  Standards that are devoted to the profession;
|
|
|
Rules of conduct;
|
|
|
Technical attributes;
|
|
|
Regulations.
|
|
|
|
|
2.
|
A rich ethics-based strategy for organizations post-Enron has a foundation based on the fact that: 2
|
|
|
Values and ethics are exactly the same;
|
|
|
An ethical-based strategy is richer in values;
|
|
|
Ethics are public; values are private;
|
|
|
Generation Y learners are private.
|
|
|
|
|
3.
|
The Public Company Accounting Oversight Board (PCAOB) was established: 4
|
|
|
In 1998;
|
|
|
As a result of the scandals and the lack of credibility of CPA's;
|
|
|
By the Securities and Exchange Commission because of requirements in the SEC Act of 1933;
|
|
|
Because recent scandals created the Canadian Public Accountability Board.
|
|
|
|
|
4.
|
A fiduciary relationship exists with clients and CPA's because: 5
|
|
|
CPA's always try to keep their clients satisfied;
|
|
|
Being a fiduciary requires knowledge of accounting;
|
|
|
Services are different because of the level of expertise of a professional accountant who is trusted;
|
|
|
CPA's are generally competent.
|
|
|
|
|
5.
|
The public interest means that: 6
|
|
|
The public is government-supported;
|
|
|
The group served by accountants according to KPMG;
|
|
|
The group served by accountants according to SOX;
|
|
|
The group serviced by only CPA's.
|
|
|
|
|
6.
|
The most effective way to establish an ethics program is: 11
|
|
|
To call KPMG and Coopers and Lybrand;
|
|
|
To use principles set forth in the KPMG Ethics Toolkit;
|
|
|
To call a CPA who follows the IRS Tax Code;
|
|
|
To call a hotline and report the wrongs in the company.
|
|
|
|
|
7.
|
Not conforming to GAAP is a serious violation that is: 13
|
|
|
Committed by 71 percent of CPA's;
|
|
|
Violated and in conformance with the Principle of Objectivity;
|
|
|
Committed by about half of CPA's;
|
|
|
CPA's never fail to conform to GAAP.
|
|
|
|
|
8.
|
The best way to conform with the Due Care Standard is to: 14
|
|
|
Follow GAAP at all costs;
|
|
|
Perform audits in accordance with GAAS;
|
|
|
Only accept relationships where there is trust;
|
|
|
Never complete an audit for large, public companies.
|
|
|
|
|
9.
|
CPA professionals: 17
|
|
|
Follow the AICPA Professional Code of Conduct if the accountants are members of the AICPA;
|
|
|
Follow the AICPA Professional Code of Conduct if they perform audits;
|
|
|
Follow the SEC's Professional Code of Conduct after SOX;
|
|
|
Follow their own ethics.
|
|
|
|
|
10.
|
To appear to be independent, the CPA should avoid circumstances that would cause an informed third party to reasonably conclude that the integrity, objectivity, or professional skepticism of a firm or member of the audit engagement: 14
|
|
|
Was compromised;
|
|
|
CPA's must be independent for all services;
|
|
|
CPA's must always appear to be independent;
|
|
|
CPA's must follow an integrity-based program for the public interest.
|
|
|
|
